Not Just Taxpayers, Ratepayers Need To Step Up And Fund India's Growth: Finance Secy

India's economic growth needs to fueled by ratepayers, not just taxpayers and borrowings, according to Finance Secretary Ajay Seth.

Addressing an event of the Skoch Group in New Delhi, Seth said of the three sets that fund India's savings pools, ratepayers need to step up.

Ratepayers here refers to those who use basic daily utilities and services such as water, electricity and public transport such as buses and metros.

"The savings pool in this country is limited. We generate income and we either deploy or invest it. But who's going to finance the growth...only three sets -- taxpayers, the next generation (borrowings) or ratepayers. So far, only taxpayers or next generation have been financing growth," he said.

"The role of ratepayers has been muted, all three sets have to deliver and ratepayers have to play a prominent role," Seth added.

He added that if more and more things will be free, then the load of funding the nation's growth will fall on taxpayers or borrowings.

"There will always be segments of society that will need to be provided services at an affordable cost or free, that remains. But ratepayers have to play an equally important part of the growth journey. We pay for metro, buses and electricity, but if all bus rides or electricity were made free, it adds a huge cost to taxpayers, to the rest of the people," he said.